Interested in how to calculate your income tax, national insurance and payroll deductions on a £10,000.00 Salary? All the calculations used to calculate national insurance, employers national insurance, PAYE, pensions and other salary deductions are available for this £10,000.00 salary example further down this page with supporting guides and tools to help improve understanding of how tax is calculated in the UK.

Calculate and Print / Email this Salary Example

If you found this salary example useful, please vote and / or share below as it helps us to shape future developments and keep iCalculators Salary and Tax Calculators free for all to use.

★★★★★ [ No Votes ]

£10,000.00 Salary After Tax Analysis

Based on the £10,000.00 Salary above which uses the 2020 Personal allowance of £12,500.00 and class 1 National Insurance Contributions, 3% Employee Pension contributions to a company pension (whilst this is not compulsory to join a company pension scheme, it is increasingly common to sign up to company pension schemes as it allows you to pay less tax, we have also included a Employer pension contribution of 5% to allows visability of associated salary package and cost of employment). Lets review what this means on a practical level:

What is the Taxable Income on a £10,000.00 Salary?

None of the £10,000.00 Salary is subject to tax in 2020

How much Income Tax would I pay on a £10,000.00 Salary?

None of the £10,000.00 Salary is subject to personal income tax in 2020

Your taxable income is below the starting rate income tax threshold so no PAYE income tax is applied in this salary calculation

How much National Insurance would I pay on a £10,000.00 Salary?

You would pay £104.16 in Class 1 National Insurance Contributions (NIC's) on an annual salary of £10,000.00 in 2020. How we calculated National Insurance Contributions on a £10,000.00 salary:

How much Employers National Insurance is paid on a £10,000.00 Salary?

The employer would pay £119.78 in Employers National Insurance Contributions (ENIC's) on an annual salary of £10,000.00 in 2020. How we calculated Employers National Insurance Contributions on a £10,000.00 salary:

Employer Class 1 NICS Calculation: Due within the Secondary Threshold

£9,500.00

Adjusted income (allowing for Salary Sacrifice and Pensions)

-

£8,632.00

Weekly Secondary Threshold (ST) (52 x £166.00)

=

£868.00

Amount subject to Secondary Threshold National Insurance Contributions in 2020

x

13.8%

Employer's Class 1 contribution rate above Secondary Threshold

=

£119.78

Your employer NICS in 20201

1 Employers can claim up to £3,000.00 off the NIC bill in 2020 using the Employment Allowance scheme. You must have more than one employee and pay class 1 National Insurance Contributions. You can also claim Employment Allowance if you employ a care or support worker. The Employment allowance is not shown in this illustration due to the variance of amounts dependant on number of employees / means of claiming the allowance.

What is the Cost of Employment for an Employee of a £10,000.00 Salary in the UK?

2020 Employee Salary Deductions: The Basics

If you have never really looked at your payslip or perhaps it's your first job and the first time you have looked at a payslip, it is worth spending a few minutes getting to know what the different deductions and payroll details are. If you dont have a payslip, here is a simple payslip example for an annual salary of £10,000.00. Understanding your payslip and payroll deductions allows you to identify potential errors and know what to do when mistakes are made so you can claim back any overpaid tax. It is also important to understand how your salary and financial commitments look as this is a key factor when reviewing your P60 and for calculating how much you can borrow for a mortgage when you buy your first home or move home, we cover the P60 and Mortgages in more detail later. The guides below are easy to read and designed to provide a basic understanding of payslip and payroll deductions.